Digital media startup, First Meta, launches the world’s first virtual credit card with seed funds from i.Jam Micro Funding scheme.
In 2007, First Meta became the first company in the world to launch a credit card for the virtual world.
Their customers? “Residents” in Second Life - a popular online community where members socialise and make transactions with virtual currency called Linden dollars.
This bold venture was finally born after three years of studying its business potential.
“We’d been monitoring the market for nearly 4 years. At the end of 2006, we felt that the market conditions were ideal. Second Life had grown phenomenally during that period,” said Ms Aileen Sim, First Meta’s Chief Operating Officer and Co-Founder.
Seed Funding For The Big Idea
A fortunate turn of events also led to First Meta’s successful search for funding to finance the development of MetaCard.
“My partner, Douglas, has another company called Expara which conducts entrepreneurship training courses for MDA. They hooked us up with the Interactive Digital Media (IDM) Programme Office which was setting up the i.Jam Micro Funding Scheme then,” said Aileen.
Applying for the scheme had been a breeze. First Meta submitted only one business proposal. Following a few revisions, First Meta was given an offer letter. In all, the process took just eight weeks, a pleasant surprise for Aileen.
Publicity & Credibility For FirstMeta
Assistance from The IDM Programme Office did not stop at funding. During roadshows to introduce the i.Jam Micro Funding scheme, officers used First Meta as an example/case study of how the scheme could help start-ups with groundbreaking ideas.
“The officers from the IDM Programme Office were, and still are, active evangelists for First Meta,” said Aileen. A wave of publicity for the firm ensued, thus raising public awareness of its MetaCard. This in turn attracted international press exposure in prominent publications such as ZDNet Asia, Business Week and TechCrunch.
Getting approval for the i.Jam Micro Funding scheme also lent First Meta much needed credibility when it was pitching to angel investors for its first round financing. It was an added assurance the company had a sound business proposition.
Turning Virtual Currency Into Real Money
“First Meta’s business model is very similar to that of real-world banks, but is denominated in virtual currency like Linden Dollars” said Aileen.
The so-named MetaCard® is a virtual-currency-denominated credit card that is similar to a real-world credit card. It is accepted by over 550 virtual merchants in Second Life, allowing its holders to “buy now and pay later” in Linden dollars.
First Meta collects interest on outstanding balance and fees from merchants. The revenue, in Linden dollars, is then sold at the Linden Exchange and converted into real-world currency.
In the next few months, First Meta will be launching additional credit products such as Linden-dollar mortgages.
Networking, Talent And Dutch Courage
Cultivating the right network of contacts was crucial. Several angel investors put money into the company based on the strength of personal recommendations.
Aileen said, “You need to put yourself in the right environment to meet the right people who will invest in your idea or evangelise to others. And never be afraid to ask for help.”
Holding back expansion plans till the company recruited “the best possible people” was also key to the company’s success.
At the core of First Meta’s breakthrough are three simple words that all aspiring entrepreneurs may wish to heed: “Just do it.”
How First Meta Secured Funding
- Found out about the funding through networking contacts.
- Refined business proposal based on feedback from IDM Programme Office.
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How the i.Jam Micro Funding Scheme Helped
- Provided seed funding to develop MetaCard®.
- Lent credibility to the company which helped attract angel investors.
- Raised the company’s profile among industry players via media publicity, networking events and demonstrations.
- Gained the trust of customers as a reliable business.
- IDM Programme Office continues to evangelize First Meta through word-of-mouth.
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